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Private Foundations

Book Description

The must-have tax law reference for private foundations, updated for 2017

Private Foundations provides an authoritative reference and extensive analysis of tax law and compliance in the private foundations arena, with a wealth of practical tools to streamline applications, filing, and reporting. This 2017 Cumulative Supplement captures the latest regulatory developments for easy reference, with coverage of tax-exempt status, the self-dealing rules, mandatory distribution, jeaopardizing investments, taxable expnditures, annual reporting to the IRS, winding up a foundation's affairs, and much more. Comprehensive line-by-line instructions are included for a variety of exemption applications and tax forms, and easy-to-use checklists highlight areas of critical concern to help you avoid oversights. Sample documents are provided to guide the composition of organizational bylaws and various letters, and completed IRS forms provide practical reference for side-by-side comparison. With comprehensive, up-to-date coverage of the private foundations space alongside helpful tools and visual reference, this book is a resource every foundation's needs.  

Written by two of the nation's leading authorities on private foundations, this supplement provides essential guidance you can trust. Clear, concise instructions focused on real-world use makes this reference a critical companion for those tasked with the responsibility of maintaining a foundation's tax-exempt status and staying out of regulatory difficulties.

  • Learn the latest guidelines for compliance, reporting, and eligibility
  • Access the latest regulatory changes quickly and easily
  • Organize reporting and applications with checklists and sample forms
  • Find valuable tools and reference for all aspects of private foundation compliance

Increasing IRS scrutiny makes compliance a more critical issue than ever before. An organization's tax-exempt status is generally vital to its continued operation, and a single oversight can put the future in jeopardy and staying out of regulatory difficulties. Private Foundations provides detailed instructions, examples, and much-needed answers on all aspects of private foundation tax law and compliance. 

Table of Contents

  1. Cover
  2. Title Page
  3. Preface
  4. Book Citations
  5. CHAPTER ONE: Introduction to Private Foundations
    1. § 1.6 FOUNDATIONS IN OVERALL EXEMPT ORGANIZATIONS CONTEXT
    2. *§ 1.10 PRIVATE FOUNDATIONS SANCTIONS
  6. CHAPTER TWO: Starting and Funding a Private Foundation
    1. § 2.5 ACQUIRING RECOGNITION OF TAX-EXEMPT STATUS
    2. § 2.7 WHEN TO REPORT BACK TO THE IRS
    3. NOTES
  7. CHAPTER THREE: Types of Private Foundations
    1. § 3.1 PRIVATE OPERATING FOUNDATIONS
    2. *§ 3.1A EXEMPT OPERATING FOUNDATIONS
  8. CHAPTER FOUR: Disqualified Persons
    1. § 4.4 FAMILY MEMBERS
    2. NOTES
  9. CHAPTER FIVE: Self-Dealing
    1. *§ 5.1 PRIVATE INUREMENT DOCTRINE
    2. *§ 5.3 DEFINITION OF SELF-DEALING
    3. § 5.4 SALE, EXCHANGE, LEASE, OR FURNISHING OF PROPERTY
    4. § 5.6 PAYMENT OF COMPENSATION
    5. § 5.8 USES OF INCOME OR ASSETS BY DISQUALIFIED PERSONS
    6. *§ 5.10 PAYMENTS TO GOVERNMENT OFFICIALS
    7. § 5.11 INDIRECT SELF-DEALING
    8. § 5.12 PROPERTY HELD BY FIDUCIARY
    9. *§ 5.15 ISSUES ONCE SELF-DEALING OCCURS
    10. NOTES
  10. CHAPTER SIX: Mandatory Distributions
    1. § 6.2 ASSETS USED TO CALCULATE MINIMUM INVESTMENT RETURN
    2. § 6.5 QUALIFYING DISTRIBUTIONS
    3. § 6.7 SATISFYING THE DISTRIBUTION TEST
    4. NOTES
  11. CHAPTER SEVEN: Excess Business Holdings
    1. § 7.1 GENERAL RULES
    2. § 7.2 PERMITTED AND EXCESS HOLDINGS
    3. § 7.3 FUNCTIONALLY RELATED BUSINESSES
    4. *§ 7.4 RULES APPLICABLE TO CERTAIN SUPPORTING ORGANIZATIONS
    5. § 7.6 EXCISE TAXES ON EXCESS HOLDINGS
    6. NOTES
  12. CHAPTER EIGHT: Jeopardizing Investments
    1. § 8.1 GENERAL RULES
    2. § 8.2 PRUDENT INVESTMENTS
    3. § 8.3 PROGRAM-RELATED INVESTMENTS
    4. NOTES
  13. CHAPTER NINE: Taxable Expenditures
    1. § 9.1 LEGISLATIVE ACTIVITIES
    2. § 9.2 POLITICAL CAMPAIGN ACTIVITIES
    3. § 9.3 GRANTS TO INDIVIDUALS
    4. § 9.4 GRANTS TO PUBLIC CHARITIES
    5. *§ 9.4A GRANTS TO EXEMPT OPERATING FOUNDATIONS
    6. § 9.5 GRANTS TO FOREIGN ORGANIZATIONS
    7. *§ 9.6 EXPENDITURE RESPONSIBILITY
    8. *§ 9.9 DISTRIBUTIONS TO CERTAIN SUPPORTING ORGANIZATIONS
    9. § 9.10 EXCISE TAX FOR TAXABLE EXPENDITURES
    10. NOTES
  14. CHAPTER TEN: Tax on Investment Income
    1. § 10.3 FORMULA FOR TAXABLE INCOME
    2. NOTES
  15. CHAPTER ELEVEN: Unrelated Business Income
    1. § 11.1 GENERAL RULES
    2. *§ 11.2 EXCEPTIONS
    3. § 11.3 RULES SPECIFICALLY APPLICABLE TO PRIVATE FOUNDATIONS
    4. § 11.5 CALCULATING AND REPORTING THE TAX
    5. NOTES
  16. CHAPTER TWELE: Tax Compliance and Administrative Issues
    1. § 12.1 SUCCESSFUL PREPARATION OF FORM 990-PF
    2. § 12.2 REPORTS UNIQUE TO PRIVATE FOUNDATIONS
    3. § 12.3 COMPLIANCE ISSUES
    4. NOTES
  17. CHAPTER THIRTEEN: Termination of Foundation Status
    1. § 13.4 OPERATION AS A PUBLIC CHARITY
    2. § 13.5 MERGERS, SPLIT-UPS, AND TRANSFERS BETWEEN FOUNDATIONS
    3. NOTES
  18. CHAPTER FIFTEEN: Private Foundations and Public Charities
    1. *§ 15.4 PUBLICLY SUPPORTED ORGANIZATIONS DONATIVE ENTITIES
    2. § 15.5 SERVICE PROVIDER ORGANIZATIONS
    3. § 15.7 SUPPORTING ORGANIZATIONS
    4. § 15.8 CHANGE OF PUBLIC CHARITY CATEGORY
    5. NOTES
  19. CHAPTER SEVENTEEN: Corporate Foundations
    1. § 17.3 PRIVATE INUREMENT DOCTRINE
    2. § 17.5 SELF-DEALING RULES
    3. NOTES
  20. CHAPTER EIGHTEEN: Nonprofit Governance and Private Foundations (New)
    1. § 18.1 STATE LAW OVERVIEW
    2. § 18.2 BOARD OF DIRECTORS BASICS
    3. § 18.3 PRINCIPLES OF FIDUCIARY RESPONSIBILITY
    4. § 18.4 DUTIES OF DIRECTORS
    5. § 18.5 BOARD COMPOSITION AND FEDERAL TAX LAW
    6. § 18.6 SOURCES OF NONPROFIT GOVERNANCE PRINCIPLES
    7. § 18.7 RELEVANT NONPROFIT GOVERNANCE ISSUES
    8. § 18.8 NONPROFIT GOVERNANCE POLICIES
    9. § 18.9 ROLE OF IRS IN NONPROFIT GOVERNANCE
    10. § 18.10 GOVERNANCE PRINCIPLES AND PRIVATE FOUNDATIONS
    11. NOTES
  21. Cumulative Table of Cases
  22. Cumulative Table of IRS Revenue Rulings and Revenue Procedures
  23. Cumulative Table of IRS Private Determinations Cited in Text
  24. Cumulative Table of IRS Private Determinations Discussed in Bruce R. Hopkins' Nonprofit Counsel
  25. Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda
  26. Table of Private Foundation Law Tax Reform Proposals
  27. About the Authors
  28. About the Online Resources
  29. Cumulative Index
  30. End User License Agreement